Siow Li Sen, Business Times 28 Jun 08;
COMMODITIES exchanges can help Singapore develop into a vibrant centre for natural resources, given the island's location in the region, said the Economic Development Board.
Last year a new EDB unit, the New Business Group, was formed to spot future trends and their business potential. This unit has identified several trends, such as natural resources.
An EDB spokesman said it had developed a Natural Resources Strategy early this year which encompasses mining, minerals, agriculture, aquaculture, plantation and forestry.
'Singapore is strategically located in the midst of the fast growing Asia Pacific region which is now the world's biggest markets for hard and soft commodities,' said the spokesman.
He was replying to a query on the wooing of commodities exchanges to set up in Singapore.
Financial Technologies (India) Ltd, according to reports, is expected to start a new commodity exchange in Singapore soon.
'Singapore could function as a nerve centre that fulfils global market demand for natural resources and create technologies to ensure global resource sustainability,' said the EDB spokesman.
'The commodities exchanges are a vital part of the market mechanism, introduce vibrancy and fits well into Singapore's business, legal and financial infrastructure,' he said.
Financial Technologies, which is in the business of setting up exchanges, is also the founder of Multi Commodity Exchange of India (MCX), the leading commodity exchange in India.
Financial Technologies and PTC financial services, a wholly owned subsidiary of PTC India Ltd, are the promoters of Indian Energy Exchange Ltd, India's first-ever power exchange which began operations yesterday.
Meanwhile, MCX chief executive Joseph Massey has clarified that MCX has no plans to start a new exchange in Singapore.
Sources say MCX could be involved with the new commodity exchange, called the Singapore Mercantile Exchange (SMX), through cooperative arrangements.
'At the appropriate time, I will comment,' said Mr Massey when asked about MCX's potential involvement with the SMX.
